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Version: 2011.07.01

V. Coverage Limitations

When We or a third party designated by Us or acting on Our behalf, repair or replace a construction defect the repair or replacement will include the repair or replacement of only those surfaces, finishes and coverings that were damaged by the construction defect that were part of the home or the common elements when title was first transferred by Us. Surfaces, finishes and coverings that require repair or replacement in order for Us or a third party designated by Us to repair or replace construction defects will be repaired or replaced. The extent of the repair and replacement of these surfaces finishes or coverings will be to approximately the same condition they were in prior to the construction defect, but not necessarily to a new condition.

When repairing or replacing surfaces, finishes and coverings, the repair or replacement will attempt to achieve as close a match with the original surrounding areas as is reasonably possible, but an exact match cannot be guaranteed due to such factors as fading, aging and unavailability of the same materials.

In the case where a construction defect exists and the home is rendered uninhabitable, the repair of the construction defect shall include the reasonable cost of the Homeowners alternative shelter until the home is made habitable. If Homeowner must vacate the home during a repair, Classic reserves the right to approve the costs for alternative housing and will not be responsible for any unapproved costs or costs that are deemed by Classic to be excessive. In all cases, the maximum amount We will reimburse You for vacating the home is $150.00 per day.